Econ11026: Principles Of Economics- Assessment Answer

1HABH

Economics Assignment Help:

Task:

1. Market structures

Using the IBISWorld database and the market model characteristics, describe the structure, conduct and performance of the Australian grain growing industry. What market structure does this industry resemble? As a minimum, you should address:

(a) The structure and key features of the industry
(b) The nature of the product(s) sold
(c) Barriers to entry (if any)
(d) The level of competition and market share concentration of major players (if any)
(e) Short run and long-run profit maximisation process
(f) Comment on the economic efficiency of this market structure and its impact on the consumer

[This question requires background research. You may access the IBISWorld database from the library website. See Helpful Hints on p.4 on how to access the database]

2. Market structures

Below are the national market shares of Australian supermarket and grocery stores.

(a) Which market structure best describes the Australian supermarket and grocery industry? Why?
(b) Describe the barriers to entry into this market.
(c) What forms of non-price competition do the firms in this market engage in?
(d) Using the kinked demand model, show why firms operating in this type of market are unlikely to alter output and price drastically. Evaluate the merits and limitations of this market structure from an economic efficiency perspective.

3. Market structures
What do you understand about the behaviour of firms operating under the condition of monopolistic competition? In answering this question, you should, as a minimum, discuss:

(a) The structure of the market place for such firms
(b) Explain how short run losses or profits might arise
(c) Describe the process by which profits or losses are eroded
(d) With examples, explain how the firms in this market engage in non-price competition.
(e) Briefly describe the limitations of this market structure.